California has the highest tax rate on gasoline in the United States. As of January 2024, the gas tax in California amounted to **** U.S. cents per gallon. California has long been known as the state with the highest tax rates – and consequently some of the highest fuel prices in the country. In October 2024, it ranked above Hawaii as the U.S. state with the highest gasoline retail price. Gas price components Out of all components making up retail gasoline prices, federal and state taxes are one of the strongest determinants of how much consumers pay for gas. These taxes are generally invested back into the construction and repair of road infrastructure. The federal government also places a tax on gasoline sold in the country, but almost every gas tax imposed by the states themselves is higher than this federal rate. Higher gasoline taxes may also affect driving habits, as those who live in states with higher gas taxes tend to drive less when other options are available. U.S. motor fuel tax revenue State taxes on fuel were first introduced in Oregon in 1919 while the rest of the states followed suit within the next decade. The amount generated through such taxes increased significantly throughout the last 40 years, with annual U.S. state and local motor fuel tax revenue climbing to over ** billion U.S. dollars.

Alaska had *** of the lowest effective gas taxes on gas in the United States at ** U.S. cents per gallon as of January 2021. At that same time, gas price in Alaska was at **** U.S. cents per gallon. By comparison, California had *** of the highest taxes on gas in the U.S. at ** U.S. cents per gallon and with gas costing **** U.S. cents per galon.

Gasoline prices in the United States have experienced significant fluctuations over the past three decades, with 2024 seeing an average price of 3.3 U.S. dollars per gallon. This marks a notable decrease from the record high of 3.95 U.S. dollars per gallon in 2022, yet remains considerably higher than prices seen in the early 2000s. Despite this, American consumers continue to enjoy relatively low gasoline prices compared to many other countries, with some European countries paying more than double the U.S. average. Drivers in Hawaii and California pay the most at the pump Gasoline prices vary significantly across the United States, with Hawaii and California consistently ranking as the most expensive states for this fuel. As of January 1, 2025, Hawaii's average price for regular gasoline was 4.54 U.S. dollars per gallon, nearly 1.5 dollars above the national average. California's high prices are largely attributed to its steep gasoline taxes, which reached 68.1 U.S. cents per gallon in January 2024. These taxes play a crucial role in shaping retail prices and are typically reinvested in road infrastructure, demonstrating the direct link between fuel costs and transportation development. Patterns in gasoline consumption In a global context, the United States maintains some of the lowest conventional motor fuel prices among high-income countries. This is largely due to its position as the world's largest crude oil producer, allowing it to keep retail prices comparatively low. Despite fluctuations in price, gasoline consumption in the U.S. remains robust, averaging around 8.5 million barrels per day in 2024. Consumption tends to be highest in the summer months and lowest in the winter months due to changing driving behavior.

United States US: Fossil Fuel Support by Sector: Transportation: USD: 2021 Price: Tax Expenditure: Natural Gas data was reported at 132.364 USD mn in 2021. This records a decrease from the previous number of 137.647 USD mn for 2020. United States US: Fossil Fuel Support by Sector: Transportation: USD: 2021 Price: Tax Expenditure: Natural Gas data is updated yearly, averaging 34.650 USD mn from Sep 2010 (Median) to 2021, with 12 observations. The data reached an all-time high of 137.647 USD mn in 2020 and a record low of 16.026 USD mn in 2016. United States US: Fossil Fuel Support by Sector: Transportation: USD: 2021 Price: Tax Expenditure: Natural Gas data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s United States – Table US.OECD.ESG: Environmental: Fossil Fuel Support by Sector: OECD Member: Annual.

United States US: Fossil Fuel Support by Sector: Electricity Generation: USD: 2021 Price: Tax Expenditure: Natural Gas data was reported at 0.000 USD mn in 2021. This stayed constant from the previous number of 0.000 USD mn for 2020. United States US: Fossil Fuel Support by Sector: Electricity Generation: USD: 2021 Price: Tax Expenditure: Natural Gas data is updated yearly, averaging 0.000 USD mn from Sep 2010 (Median) to 2021, with 12 observations. The data reached an all-time high of 0.000 USD mn in 2021 and a record low of 0.000 USD mn in 2021. United States US: Fossil Fuel Support by Sector: Electricity Generation: USD: 2021 Price: Tax Expenditure: Natural Gas data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s United States – Table US.OECD.ESG: Environmental: Fossil Fuel Support by Sector: OECD Member: Annual.

United States US: Fossil Fuel Support by Beneficiary: Producer Support Estimate: USD: 2021 Price: Tax Expenditure: Natural Gas data was reported at 1.013 USD bn in 2021. This records an increase from the previous number of 966.851 USD mn for 2020. United States US: Fossil Fuel Support by Beneficiary: Producer Support Estimate: USD: 2021 Price: Tax Expenditure: Natural Gas data is updated yearly, averaging 1.605 USD bn from Sep 2010 (Median) to 2021, with 12 observations. The data reached an all-time high of 2.360 USD bn in 2011 and a record low of 368.164 USD mn in 2017. United States US: Fossil Fuel Support by Beneficiary: Producer Support Estimate: USD: 2021 Price: Tax Expenditure: Natural Gas data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s United States – Table US.OECD.ESG: Environmental: Fossil Fuel Support by Beneficiary: OECD Member: Annual.

United States Fossil Fuel Support by Sector: Transportation: USD: 2022 Price: Tax Expenditure: Natural Gas data was reported at 141.459 USD mn in 2022. This records a decrease from the previous number of 151.392 USD mn for 2021. United States Fossil Fuel Support by Sector: Transportation: USD: 2022 Price: Tax Expenditure: Natural Gas data is updated yearly, averaging 40.598 USD mn from Sep 2010 (Median) to 2022, with 13 observations. The data reached an all-time high of 151.392 USD mn in 2021 and a record low of 23.156 USD mn in 2015. United States Fossil Fuel Support by Sector: Transportation: USD: 2022 Price: Tax Expenditure: Natural Gas data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s United States – Table US.OECD.ESG: Environmental: Fossil Fuel Support by Sector: OECD Member: Annual.

United States Fossil Fuel Support by Sector: Other: USD: 2022 Price: Tax Expenditure: Natural Gas data was reported at 54.849 USD mn in 2022. This records a decrease from the previous number of 60.861 USD mn for 2021. United States Fossil Fuel Support by Sector: Other: USD: 2022 Price: Tax Expenditure: Natural Gas data is updated yearly, averaging 74.225 USD mn from Sep 2010 (Median) to 2022, with 13 observations. The data reached an all-time high of 168.423 USD mn in 2012 and a record low of 54.849 USD mn in 2022. United States Fossil Fuel Support by Sector: Other: USD: 2022 Price: Tax Expenditure: Natural Gas data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s United States – Table US.OECD.ESG: Environmental: Fossil Fuel Support by Sector: OECD Member: Annual.

United States Fossil Fuel Support by Sector: Residential: USD: 2022 Price: Tax Expenditure: Natural Gas data was reported at 638.450 USD mn in 2022. This records a decrease from the previous number of 1.017 USD bn for 2021. United States Fossil Fuel Support by Sector: Residential: USD: 2022 Price: Tax Expenditure: Natural Gas data is updated yearly, averaging 1.017 USD bn from Sep 2010 (Median) to 2022, with 13 observations. The data reached an all-time high of 1.082 USD bn in 2011 and a record low of 638.450 USD mn in 2022. United States Fossil Fuel Support by Sector: Residential: USD: 2022 Price: Tax Expenditure: Natural Gas data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s United States – Table US.OECD.ESG: Environmental: Fossil Fuel Support by Sector: OECD Member: Annual.

United States Fossil Fuel Support by Sector: Fossil Fuel Production: USD: 2022 Price: Tax Expenditure: Natural Gas data was reported at 1.922 USD bn in 2022. This records an increase from the previous number of 1.336 USD bn for 2021. United States Fossil Fuel Support by Sector: Fossil Fuel Production: USD: 2022 Price: Tax Expenditure: Natural Gas data is updated yearly, averaging 1.842 USD bn from Sep 2010 (Median) to 2022, with 13 observations. The data reached an all-time high of 2.975 USD bn in 2010 and a record low of 1.122 USD bn in 2017. United States Fossil Fuel Support by Sector: Fossil Fuel Production: USD: 2022 Price: Tax Expenditure: Natural Gas data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s United States – Table US.OECD.ESG: Environmental: Fossil Fuel Support by Sector: OECD Member: Annual.

United States Fossil Fuel Support by Beneficiary: Consumer Support Estimate: USD: 2022 Price: Tax Expenditure: Natural Gas data was reported at 701.750 USD mn in 2022. This records a decrease from the previous number of 1.086 USD bn for 2021. United States Fossil Fuel Support by Beneficiary: Consumer Support Estimate: USD: 2022 Price: Tax Expenditure: Natural Gas data is updated yearly, averaging 1.095 USD bn from Sep 2010 (Median) to 2022, with 13 observations. The data reached an all-time high of 1.259 USD bn in 2012 and a record low of 701.750 USD mn in 2022. United States Fossil Fuel Support by Beneficiary: Consumer Support Estimate: USD: 2022 Price: Tax Expenditure: Natural Gas data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s United States – Table US.OECD.ESG: Environmental: Fossil Fuel Support by Beneficiary: OECD Member: Annual.

United States Fossil Fuel Support by Sector: Electricity Generation: USD: 2022 Price: Tax Expenditure: Natural Gas data was reported at 0.000 USD mn in 2022. This stayed constant from the previous number of 0.000 USD mn for 2021. United States Fossil Fuel Support by Sector: Electricity Generation: USD: 2022 Price: Tax Expenditure: Natural Gas data is updated yearly, averaging 0.000 USD mn from Sep 2010 (Median) to 2022, with 13 observations. The data reached an all-time high of 0.000 USD mn in 2022 and a record low of 0.000 USD mn in 2022. United States Fossil Fuel Support by Sector: Electricity Generation: USD: 2022 Price: Tax Expenditure: Natural Gas data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s United States – Table US.OECD.ESG: Environmental: Fossil Fuel Support by Sector: OECD Member: Annual.

United States Fossil Fuel Support by Beneficiary: Producer Support Estimate: USD: 2022 Price: Tax Expenditure: Natural Gas data was reported at 2.048 USD bn in 2022. This records an increase from the previous number of 1.472 USD bn for 2021. United States Fossil Fuel Support by Beneficiary: Producer Support Estimate: USD: 2022 Price: Tax Expenditure: Natural Gas data is updated yearly, averaging 1.900 USD bn from Sep 2010 (Median) to 2022, with 13 observations. The data reached an all-time high of 3.033 USD bn in 2010 and a record low of 1.141 USD bn in 2017. United States Fossil Fuel Support by Beneficiary: Producer Support Estimate: USD: 2022 Price: Tax Expenditure: Natural Gas data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s United States – Table US.OECD.ESG: Environmental: Fossil Fuel Support by Beneficiary: OECD Member: Annual.

United States Fossil Fuel Support by Beneficiary: General Services Support Estimate: USD: 2022 Price: Tax Expenditure: Natural Gas data was reported at 0.000 USD mn in 2022. This stayed constant from the previous number of 0.000 USD mn for 2021. United States Fossil Fuel Support by Beneficiary: General Services Support Estimate: USD: 2022 Price: Tax Expenditure: Natural Gas data is updated yearly, averaging 0.000 USD mn from Sep 2010 (Median) to 2022, with 13 observations. The data reached an all-time high of 0.000 USD mn in 2022 and a record low of 0.000 USD mn in 2022. United States Fossil Fuel Support by Beneficiary: General Services Support Estimate: USD: 2022 Price: Tax Expenditure: Natural Gas data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s United States – Table US.OECD.ESG: Environmental: Fossil Fuel Support by Beneficiary: OECD Member: Annual.